611.9431/53
The Japanese Embassy to the Department of State94
Memorandum
- 1.
- From the present trend of commercial relations between Japan and the United States, it is highly likely that for some time to come the balance of trade will continue to be unfavorable to Japan.
- 2.
- But it is fortunate that industries in our two countries cover generally different fields. Japan’s important exports to the United States are raw silk, canned foodstuffs, porcelain and potteries, etc.; while the United States’ important exports to Japan are raw cotton, lumber, machinery, mineral oil, etc. It is a case of complemental and non-competitive trade. It is therefore plain that there are great possibilities of trade increase between our two countries as a concrete evidence of mutual helpfulness. While many countries are adopting the policy of economic nationalism and, by restricting importation, are greatly injuring international trade, the trade of our two countries is on such wholesome foundation and is capable of a great development through mutual efforts.
- 3.
- From such point of view, Japan has recognized the necessity of endeavoring to adjust as far as possible the interests of Japan and the United States in industries where competition may occur and thereby to avoid difficulties in the broad lines of our trade relations. Therefore, ever since the coming into force of the NRA regime in this country, Japan has in that sense sincerely tried to harmonize her trade policies with those of the United States. For instance, in the cases of pencils and rag rugs, Japan has complied with the desire of the United States by enforcing self-imposed restraint on exportation.
- 4.
- In the circumstance, the Japanese Government desires to request the United States Government to give serious consideration to the matters still pending, namely, those of tuna fish, matches, and porcelain and potteries, from the broad aspects of the Japanese-American trade.
With regard to canned tuna fish, import tariff was raised in December last, in virtue of Article 336 of the Customs Act.95
[Page 810]With regard to matches, a raise in excise duties was suddenly effected and forestalled any chance of conciliatory negotiations.
With regard to porcelain and potteries, the United States Government is actually contemplating a restriction upon their importation. Heretofore, with the assistance of American authorities, the exporters and importers, both Japanese and American, of Japanese porcelain and potteries have been arranging about the prices and there have occurred no difficulties. If there should be any complaints, they are, it seems proper, to be adjusted among the merchants interested.
Such restrictions on Japanese imports would only result in making Japan’s unfavorable trade balance against the United States even more unfavorable, and would work prejudicially to the general trade relations between the two countries which are calculated to be more or less balanced and promise to increase in volume and value.